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Real Estate Assets
 6 Months Ended
Jun. 30, 2011
Real Estate and Accumulated Depreciation Disclosure [Abstract]  
Real Estate and Accumulated Depreciation Disclosure [Text Block]
3. REAL ESTATE ASSETS AND LEASE INTANGIBLES
             
A summary of the nineteen properties and model home properties owned by the Company as of June 30, 2011 is as follows:
  
             
           Real estate
   Date    Square Property assets, net
 Property Name Acquired Location  Footage Description (in thousands)
 Casa Grande Apartments  April 1999 Cheyenne, Wyoming 29,250 Residential $ 1,464.3
 Havana/Parker Complex  June 2006 Aurora, Colorado 114,000 Office   5,388.1
 7-Eleven  September 2006 Escondido, California 3,000 Retail   1,293.2
 Garden Gateway Plaza  March 2007 Colorado Springs, Colorado 115,052 Office   13,042.5
 World Plaza  September 2007 San Bernardino, California 55,098 Retail   5,646.2
 Regatta Square  October 2007 Denver, Colorado 5,983 Retail   1,969.5
 Sparky’s Palm Self-Storage  November 2007 Highland, California 50,250 Self Storage   4,655.4
 Sparky’s Joshua Self-Storage  December 2007 Hesperia, California 149,750 Self Storage   7,235.9
 Executive Office Park  July 2008 Colorado Springs, Colorado 65,084 Office   8,773.5
 Waterman Plaza  August 2008 San Bernardino, California 21,170 Retail   6,539.1
 Pacific Oaks Plaza  September 2008 Escondido, California 16,000 Office   4,568.4
 Morena Office Center  January 2009 San Diego, California 26,784 Office   5,974.5
 Fontana Medical Plaza  February 2009 Fontana, California 10,500 Office   2,134.7
 Rangewood Medical Office Building  March 2009 Colorado Springs, Colorado 18,222 Office   2,407.4
 Sparky’s Thousand Palms Self-Storage  August 2009 Thousand Palms, California 113,126 Self Storage   5,904.3
 Sparky’s Hesperia East Self-Storage  December 2009 Hesperia, California 72,940 Self Storage   2,736.9
 Sparky’s Rialto Self-Storage  May 2010 Rialto, California 101,343 Self Storage   5,196.2
 Genesis Plaza  August 2010 San Diego, California 57,685 Office   9,040.1
 Dakota Bank Buildings May 2011 Fargo, North Dakota 119,749 Office   8,938.1
  NetREIT, Inc properties           102,908.3
             
 14 model home properties  Various in          
   2009 CA and NV 34,320 Residential   5,702.6
             
 40 model home properties  Various in          
   2010 & 2011 CA, AZ, OR, WA, TX, SC       
     ID and FL 103,264 Residential   9,105.8
             
 19 model home properties,            
  held in income funds Various TX, AZ, WA, OH, NC,       
   2003-2008 NV, CA, NJ and MI 43,303 Residential   5,891.6
             
  Model home properties           20,700.0
             
     Total real estate assets, net     $ 123,608.3

A summary of the eighteen properties and model home properties owned by the Company as of December 31, 2010 is as follows:
  
             
           Real estate
   Date    Square Property assets, net
 Property Name Acquired Location  Footage Description (in thousands)
 Casa Grande Apartments  April 1999 Cheyenne, Wyoming 29,250 Residential $ 1,500.0
 Havana/Parker Complex  June 2006 Aurora, Colorado 114,000 Office   5,469.8
 7-Eleven  September 2006 Escondido, California 3,000 Retail   1,304.0
 Garden Gateway Plaza  March 2007 Colorado Springs, Colorado 115,052 Office   13,088.5
 World Plaza  September 2007 San Bernardino, California 55,098 Retail   5,716.8
 Regatta Square  October 2007 Denver, Colorado 5,983 Retail   1,989.2
 Sparky’s Palm Self-Storage  November 2007 Highland, California 50,250 Self Storage   4,712.2
 Sparky’s Joshua Self-Storage  December 2007 Hesperia, California 149,750 Self Storage   7,322.7
 Executive Office Park  July 2008 Colorado Springs, Colorado 65,084 Office   8,849.0
 Waterman Plaza  August 2008 San Bernardino, California 21,170 Retail   6,592.5
 Pacific Oaks Plaza  September 2008 Escondido, California 16,000 Office   4,623.5
 Morena Office Center  January 2009 San Diego, California 26,784 Office   6,069.7
 Fontana Medical Plaza  February 2009 Fontana, California 10,500 Office   2,170.6
 Rangewood Medical Office Building  March 2009 Colorado Springs, Colorado 18,222 Office   2,451.9
 Sparky’s Thousand Palms Self-Storage  August 2009 Thousand Palms, California 113,126 Self Storage   5,976.1
 Sparky’s Hesperia East Self-Storage  December 2009 Hesperia, California 72,940 Self Storage   2,755.6
 Sparky’s Rialto Self-Storage  May 2010 Rialto, California 101,343 Self Storage   4,830.3
 Genesis Plaza  August 2010 San Diego, California 57,685 Office   9,053.6
  NetREIT, Inc properties           94,476.0
             
 19 model home properties  Various in          
   2009 CA and NV 47,637 Residential   7,483.8
             
 26 model home properties  Various in          
   2010 CA, AZ, OR, WA and TX 62,349 Residential   5,654.9
             
 29 model home properties,            
  held in income funds Various TX, AZ, WA, OH, NC,       
   2003-2008 NV, NJ and MI 69,907 Residential   9,510.7
             
  Model home properties           22,649.4
             
     Total real estate assets, net     $ 117,125.4

  The following table sets forth the components of the Company’s real estate assets:
        
    June 30,  December 31,
    2011  2010
  Land $ 23,621,413 $ 22,413,950
  Buildings and other   105,086,850   98,639,739
  Tenant improvements   4,547,073   4,147,535
     133,255,336   125,201,224
  Less:     
  Accumulated depreciation and amortization   (9,647,029)   (8,075,805)
  Real estate assets, net $ 123,608,307 $ 117,125,419

Operations from each property are included in the Company's condensed consolidated financial statements from the date of acquisition.

 

The Company acquired the following properties in 2011:

 

In January 2011, NetREIT Dubose acquired two model home properties in Texas and leased them back to the home builder. The purchase price for the properties was $0.45 million. NetREIT Dubose paid the purchase price through a cash payment of $0.23 million and two promissory notes totaling $0.22 million.

 

In February 2011, NetREIT Dubose acquired five model home properties in California and leased them back to the home builder. The purchase price for the properties was $1.5 million. NetREIT Dubose paid the purchase price through a cash payment of $0.75 million and five promissory notes totaling $0.75 million.

 

In March 2011, NetREIT Dubose acquired four model home properties in South Carolina, Florida and Texas and leased them back to the home builder. The purchase price for the properties was $1.0 million. NetREIT Dubose paid the purchase price through a cash payment of $0.50 million and four promissory notes totaling $0.50 million.

 

In May 2011, the Company acquired vacant land consisting of approximately 3 acres adjacent to its Sparky's Rialto Self-Storage facility for approximately $0.4 million paid in cash. The Company intends to use the land for additional motor home parking or for other purposes.

 

In May 2011, the Company acquired the Dakota Bank Buildings for the purchase price of approximately $9.6 million. The Property is a six-story, two building office complex built in 1981 and 1986 located on 1.58 acres and consists of approximately120,000 rentable square feet in downtown Fargo, North Dakota. The Company made a down payment of approximately $3.875 million and financed the remainder of the purchase price through a monthly adjustable rate mortgage with interest at 3.0% over the one month Libor with an interest rate floor of 5.75% and ceiling of 9.75%.

 

In June 2011, NetREIT Dubose acquired three model home properties in Texas and leased them back to the home builder. The purchase price for the properties was approximately $0.60 million. NetREIT Dubose paid the purchase price through a cash payment of approximately $0.30 million and three promissory notes totaling approximately $0.30 million.

 

The Company disposed of the following properties in 2011:

 

During the six months ended June 30, 2011, NetREIT Dubose disposed of fifteen model home properties. The sales price aggregated approximately $5.2 million and approximately $3.5 million in mortgage notes payable were retired in connection with the sale.

 

The Company acquired the following properties in 2010:

In May 2010, the Company completed the acquisition of Sparky's Rialto Self Storage (Formerly known as Las Colinas Self Storage) located in Rialto, California. The purchase price was $4.9 million. The Company paid the purchase price through a cash payment of approximately $2.0 million and a promissory note in the amount of approximately $2.9 million. The property consists of approximately 7.5 acres of land, 101,343 rentable square feet and approximately 771 self storage units.

 

In August, 2010, the Company completed the acquisition of Genesis Plaza. The purchase price was $10.0 million The Company paid the purchase price through a cash payment of $5.0 million and a new mortgage loan with an insurance company secured by the Property of $5.0 million. The loan bears interest at 4.65% with a 25 year amortization schedule and a maturity date of August, 24, 2015 that may be extended for an additional 5 years at the lender's discretion subject to a change in the interest rates and other terms of the agreement. The Property is a four-story suburban office building built in 1988 and located in the Kearny Mesa submarket of San Diego, California, consisting of 57,685 rentable square feet.

 

In October 2010, NetREIT Dubose acquired four model home properties in Arizona and leased them back to the home builder. The purchase price for the properties was $0.9 million. NetREIT Dubose paid the purchase price through a cash payment of $0.45 million and four promissory notes totaling $0.45 million.

 

In October 2010, NetREIT Dubose acquired ten model home properties in Oregon, Idaho and Washington and leased them back to the home builder. The purchase price for the properties was $6.1 million. NetREIT Dubose paid the purchase price through a cash payment of $3.05 million and ten promissory notes totaling $3.05 million.

 

In November 2010, the Company completed its tender offer for the purchase of outstanding partnership units of the three Income Funds. The tender resulted in the Company acquiring 73.6%, 70.5% and 66.6% of the outstanding units of DMHI Fund #3, DMHI Fund #4 and DMHI Fund #5, respectively through the issuance of 112,890 shares of common stock and $896,893 in cash. As of the date of acquisition, these funds owned a total of 29 model home properties.

 

In December 2010, NetREIT Dubose acquired twelve model home properties in Texas and leased them back to the home builder. The purchase price for the properties was $2.9 million. NetREIT Dubose paid the purchase price through a cash payment of $1.45 million and twelve promissory notes totaling $1.45 million.

 

The Company allocated the purchase price of the properties acquired during the six months
  ended June 30, 2011 as follows:              
              Above Total   
     Buildings Tenant In-place Market  Purchase   
  Land  and other  Improvements  Leases  Leases Price    
Model Home                    
 Properties$ 629,120 $ 2,906,860 $ - $ - $ - $ 3,535,980   
                      
Sparky's Rialto                    
 Self-Storage  415,000   -   -   -   -   415,000   
                      
Dakota Bank                    
 Building  832,000   8,123,461   131,982   45,186   442,371   9,575,000   
                      
                      
                      
                      
                      
                      
The Company allocation of properties sold during the six months ended June 30, 2011 is as follows:
                      
     Buildings Accumulated  Net Book          
  Land  and other  Depreciation  Value         
Model Home                    
 Properties$ 668,658 $ 4,680,588 $ 165,961   5,183,285         
                      
                      
                      
                      
                      
The Company allocated the purchase price of the properties acquired during
 the twelve months ended December 31, 2010 as follows:      
                      
                 Above Total
      Buildings Tenant In-place Leasing  Market  Purchase
  Land   and other  Improvements  Leases  Costs Leases Price
Sparky's Rialto                    
 Self-Storage$ 1,055,000 $ 3,820,000 $ - $ - $ - $ - $ 4,875,000
                      
Genesis Plaza  1,400,000   7,543,510   200,954   219,070   247,774   388,692   10,000,000
                      
Model Home                    
 Properties  1,043,097   4,630,953   -   -   -   -   5,674,050

Lease Intangibles
                   
The following table summarizes the net value of other intangible assets and the accumulated amortization for each
class of intangible asset:
   June 30, 2011  December 31, 2010
         Lease        Lease
   Lease  Accumulated  intangibles,  Lease  Accumulated  intangibles,
   intangibles   Amortization   net   intangibles   Amortization   net
In-place leases $ 1,163,774 $ (662,121) $ 501,653 $ 1,031,792 $ (558,854) $ 472,938
Leasing costs   939,673   (504,036)   435,637   894,487   (423,738)   470,749
Tenant                 
 relationships 332,721   (332,721)   -   332,721   (332,721)   -
Below-market                 
Above-market                 
 leases 831,063   (132,079)   698,984   388,692   (42,772)   345,920
                   
  $ 3,267,231 $ (1,630,957) $ 1,636,274 $ 2,647,692 $ (1,358,085) $ 1,289,607

As of June 30, 2011, the estimated aggregate amortization expense for six months ended December 31,2011
and each of the five succeeding fiscal years and thereafter is as follows:
   Estimated
   Aggregate
   Amortization
   Expense
Six month period ending December 31, 2011 $ 431,365
2012   684,405
2013   209,550
2014   135,621
2015   88,917
Thereafter    86,416
  $ 1,636,274
    
The weighted average amortization period for the intangible assets, in-place leases, leasing costs, tenant
relationships and below-market leases acquired as of June 30, 2011 was 7.3 years.